Credins Bank Sh.A Vaso Pasha Street, No.8, , Phone:+355 4 5353 000 e-mail: [email protected] www.bankacredins.com

ANNUAL REPORT 2019 MESSAGE1 BUSINESS2 3RISK OPERATIONAL4 BOARD5 OF FROM CEO DEVELOPMENT DIVISION DIVISION DIVISION DIRECTORS PHOTO

PROJECTS6 7HUMAN 8SOCIAL CORPORATE9 10AUDITORS’ RESOURCES RESPONSIBILITY GOVERNANCE REPORT During the 2019, we affirmed our position as the first bank in the market for the total net loan portfolio. MESSAGE FROM CEO

2019 was closed and marked quite a satisfactory services and products. One of our priorities has also been activity which is to be launched during 2020. performance and Credins Bank successfully accomplished continuous technological transformation, which was made its strategic goals. Despite the ongoing challenges of 2019, possible by updating and converting the mobile application Furthermore, a very positive experience was the increasing related to the overall global economic situation, ever- into a more interesting and simple version for each user product portfolio by trading Albanian Eurobond in the changing regulatory demands, significant fluctuations in and establishing structures dedicated to providing 24/7 secondary local market as well as trading securities the currency exchange rates, banking system consolidation specialized service. throughout the branch network for each client. processes, and the earthquake that hit our country by We will continue to implement the priorities defined in the end of the year, Credins Bank successfully managed "YOUARECREDINS" program, launched earlier this year, the Strategic Development Plan, which highlights our to maintain a positive and sound position of liquidity, has become an academy for educating and employing ambitions to develop and move forwards in line with non-performing loans, income growth, and a satisfactory young talents as a great opportunity to start their careers. the best international standards consisting mainly in consolidation of customer relationships. In fact, today Credins Bank is one of the largest employers continuous technological improvements, implementation Throughout 2019, we affirmed our position as the first bank in the country counting 920 professionals. It is highly of modern applications, development of innovative in the market for the total net loan portfolio with a value focused on continuous development through training products in line with changes in consumer behavior, of EUR 825.6 Million. This indicator shows our ongoing provided by domestic and foreign experts, marking a expansion beyond the country's borders in the Kosovo support to businesses, individuals and the domestic milestone in their career growth as a driver to the best market, as well as continuous investment in human economy, resulting from a very successful strategic professional service to its clients. resources. management followed by the bank executives. Credins Bank continues to give high priority to the The priority of the bank and the business development All the above reflected a positive performance compared contribution in social responsibility through various unit has been the continuous support of small and medium to 2018, marking an increase in the main indicators of donations and sponsorships aimed at helping the overall businesses as the main pillar of developing the country's deposits, bank assets, number of customers, payment development of the society, infrastructure, art, culture, economy and growing employment. To enable small volume, or the use of bank cards, etc. Credins Bank education, innovation, etc. Through its ongoing initiatives, businesses access to financing, we designed facilitation continues to maintain its position in the market as the Credins Bank continues to be ranked as one of the main schemes with international partners such as COSME third largest bank in terms of total deposits and assets. supporters of the social development. Throughout 2019 agreement with the European Investment Fund, as well as These achievements are undoubtedly dedicated to the we have supported over 70 initiatives in line with the UN developed specific packages for this segment of customers excellent service provided by the bank staff in all our 17 Sustainable Development Goals. We have cooperated to provide a "one stop shop" for each customer. We branches as well as the comfort combined with a modern with various organizations and projects that help eliminate cooperated and supported Agro-business as one of the infrastructure and technology that each customer finds in poverty for the needy and children without parental most priority and strategic sectors in the country, by being any branch. care, support start-up businesses in Albania, improve the present with our mobile bank, one of the most innovative infrastructure of schools and health centers, projects to MALTIN KORKUTI CEO services in the domestic market, in every corner of the The corporate loan portfolio was carefully increased improve the environment, etc. country, even in remote areas where there are no banks. by supporting existing and new clients that delivered Credins Bank will continue to contribute to all the key We designed personalized packages for each group of successful investment plans, by always observing the risk pillars that affect overall development and well-being customers by addressing their specific needs with banking parameters for all the sectors which are the top priorities of the country and its citizens as only together can we services and preferential commissions such as packages for the bank to develop. This was also accompanied built a better future for ourselves, our children and our for students, small businesses, agro customers, etc. by a growth in the retail loan portfolio as the bank’s descendants. We are working on another innovative strategic priority. The deposit portfolio was significantly project, such as the development of the crowd fundraising We launched awareness marketing campaigns to help increased, an important indicator of the yearlong trust that platform in order to make aware the entire society to reduce informality by increasing bank card payments customers have established with Credins Bank. contribute for a better future. offering loyalty schemes with the cooperation of local 2019 was a successful year and one of its achievements and international partners, and we consistently promoted was the license granted to Credins Bank by the Financial the use and advantages of Credins Online application. Supervisory Authority for the depositary activity of We strengthened our presence in digital marketing collective investment undertakings and pension funds and by increasing online applications for various banking the establishment of optimal infrastructure to exercise this

4 CREDINS BANK ANNUAL REPORT 2019 CREDINS BANK ANNUAL REPORT 2019 5 THE TIRANA CLOCK TOWER

The Tirana Clock Tower began to be built by Haxhi Et'hem Beu in 1822. The height of the tower is 35 with a balcony, 4 fields and clock hands were assembled and a Venetian typed roof was set up. Until 1970 the tower was the highest building in the capital city. Growing collaboration with all sites in the mobile version, increased by over 20,000 the number of customers who visited our website monthly, BUSINESS counting for 62,000 in total. Many online applications were DEVELOPMENT DIVISION also generated from these channels.

LARGE BUSINESS has been accompanied with a good BRANCH SALES MANAGEMENT network. A large number of branches MARKETING DEPARTMENT promote products and services such DEPARTMENT management of the current portfolio, DEPARTMENT were restructured and modernized. as: email marketing, mas sms, etc. reducing non-performing loans by 2% Another innovation was the mobile The Marketing Department finalized In 2019, the bank's new website The strategy and focus of the bank compared to 2018. 2018 marked the third successful branch offering our banking services a very successful year in terms of was launched, with a more modern has been the small, micro, agro and Credins Bank has followed up its year on the implementation of the nationwide and in rural areas, where launched product campaigns and and easier to use design, optimizing individual segments, but on the other strategy of financing small and important project on “Sales Force there are no bank branches. digital strategy followed with the parameters at the maximum hand, a great support has also been medium businesses as the main pillar Effectiveness” throughout the branch ultimate goal of strengthening the compared to the other competitive given to the Large Business which has of development and employment network of Credins Bank. Credins Online, the "virtual" bank bank's brand, positive image delivered banks. been carefully treated with quality in the country. As a result, the The branch’s productivity, measured application through which almost to customers for a range of products, loans as well as supported to manage corporate portfolio grew more slowly, as the number of products sold by all transactions carried out at bank service quality and achievement of Many product marketing campaigns well their liquidity. This has led to the reducing its share of the bank's total the sales staff in the branch, has also counters can be performed, was a strategic objectives for the business such as Credins Online, payments improving quality of the loan portfolio portfolio. The focus throughout 2019 increased during 2019, accompanied great success both in sales and use. unit. by card and contactless cards for for this sector. was to keep the portfolio’s quality by an increasing indicator in the During 2020, the strategic priorities the purpose of increasing the use of The medium business segment under control despite the ongoing number of products sold to clients. for the branch network are focused Throughout 2019, the digital strategy cards as well as reducing Cash were continues to be supported by the challenges encountered throughout The products at the focus of the sales on maintaining the competitive was revitalized. A lot of time and successfully finalized. Campaigns Bank on a regular basis and its the year which became more staff continue to be the deposits and advantage of a high quality service energy was devoted to this process for the summer loan and the festive performance has marked a consistent intensive at the end of 2019. loans, comprising also alternative offered to clients, the ongoing in order to have maximum number loan were launched, which results increase making up 31.2% of the Also, during 2019 the Large Business products that meet all the financial process of automating manual of followers on social networks were satisfactory. Many events were bank’s total loan portfolio. It should Department was focused on needs of our customers. operations in the Branches, a process and to increase sales through organized to support the Agro loan be pointed out that the increase increasing cooperation with all The loan portfolio generated by the that last year marked a significant online applications. Two Google throughout the year, accompanied corporate clients so they can use all branch network continued to grow improvement; providing digitalization campaigns dedicated to Summer by the Mobile Branch, an innovation banking services and that they are in the retail segment, especially in to the other branches of the bank, Loan and Festive Loan were launched, for the Albanian banking market. This provided with a very high quality and small business loans. The retail loan upgrading and using Credins Online generating a significant number of branch travelled throughout Albania personalized service. Our goal is to portfolio in 2019 increased by 3.88 platform, through which clients of all online applications, and establishing a by promoting not only our brand, be the first bank for every corporate billion ALL or 13.3% compared to 2018. ages can feel comfort in their banking fast and simple line of communication providing services to customers in customer by offering a variety of During 2019, the bank's objectives services both in traditional branches with interested customers. Growing rural areas, but also delivering the products and building long-term and for the branch network were entirely and online. collaboration with all sites in the image of a digital and innovative close relationships. realized both in terms of numbers mobile version, increased by over bank. A series of shows financed There was a satisfactory increase and volumes, as well as the quality of Also, for the first time, the project for 20,000 the number of customers who from Credins Bank were successfully in business volume in general, the products sold. Branch network opening the "Smart" branch is being visited our website monthly, counting produced with Agro clients, who as as transfers increased by 9.7%, performance was at the level of 98% finalized, a branch with the latest for 62,000 in total. Many online the best witnesses, promoted the exchanges by 6.6%, payroll clients by referring to the quantitative and technological equipment providing applications were also generated support given on social networks and 11.5% and POS transactions by 50%. qualitative objectives of products sold customer service 24/7, both physically from these channels. The new slogan television channels. The Agro loan Even during 2020, Credins Bank in 2019 compared to the level of 87% and online. for 2019 was "Of course it can be exceeded the set targets. aims to support existing customers in 2018. done" delivering positive messages The strategic objective is both to for their specific needs, by carefully to clients about the potential attract new customers, and to satisfy increasing the portfolio of large Commissions of banking transactions cooperation with Credins Bank. at the maximum existing customers, financing in line with the domestic carried out this year increased by The number of followers increased offering attractive products and strategic sectors such as health, establishing a long-term relationship.

2018 2019 about 15% compared to last year, an significantly due to all campaigns energy, etc., but maintaining quality increase confirmed in all areas where launched on social networks, (+20,000 Therefore, the Marketing Department of the portfolio and focusing on the bank operates. The revenues are in '19 vs 4,800 in '18) and the products in cooperation with Mastercard, has a more comprehensive service to generated by commissions applied advertised on Facebook exceeded successfully finalized 7 offers with meet all the needs of businesses to POS, Cards, increasing number 2 Million viewers in ' 19 versus 350K internationally well-known partners, and providing new financial services and volume of transfers, foreign in '18. We ranked one of the top 3 offering a discount up to 20% from 50 % necessary for them. exchange, etc. banks for the number of followers on the use of cards. The loyalty scheme I POS 2019 was also the year of Facebook. was further extended, successfully technological innovations and New communication channels with finalizing agreements with many local digital developments for the branch customers were also launched to partners and launching a successful Another success for 2019 was the license granted to Credins Bank by the Financial Supervisory Authority for performing the depositary activity of collective investment undertakings and pension funds

campaign in December ’19 with a leaflets, websites, ATMs, etc. It also the difficult situation the country The unit worked closely with the insurance policy intermediation performing loans. discount of up to 20% from the use of coordinated successfully with all experienced by the earthquake branch network and Marketing commissions. The greatest Credins leasing continues to hold any card issued by Credins Bank. the other departments of the bank of November 26, 2019. Freelance Department to support institutions achievement of this unit during the second place in the market with a The launch and promotion of to achieve the best results from the professions, another interesting with specific requirements for year closed is the standardization share of 14%, which increased by 8% the student package is also to be campaigns. product launched in August 2019, was improving their work infrastructure, of the insurance process of new in 2019 versus 2018 although new appreciated as we were the first 2020 will be more dynamic in terms designed for a very specific target and for providing a better customer borrowers. operators were launched in the bank to sign an agreement with the of its challenges. New product group of customers. It was also service. New cooperation agreements Another success for 2019 was the market. Interest income increased by Municipality of Tirana and to provide campaigns will be launched targeting combined with a complete package were signed with institutional license granted to Credins Bank by 3% compared to 2018 and provisional to all students a very interesting certain groups of customers with of banking services needed for this employees, under which the latter the Financial Supervisory Authority expenses decreased by 74% compared package with many other benefits. specific packages or offers, promoting group. were supported with the salary for performing the depositary activity to a year ago. Furthermore, under the fiscal law, Credins Online with all its functions package, based on the specific needs of collective investment undertakings Objectives and forecasts for 2020 the launch of the favorite business and further innovative upgrades. The COSME loan was launched in of each employee. and pension funds, as well continue to be aggressive and package was accompanied with specific focus of the digital strategy September 2019, after the successful There are many objectives for 2020, establishing optimal infrastructure to they could be achieved through a the opening of a significant number will be ongoing campaigns for online completion of this project in and the department will continue to carry out this activity, which, as noted more comprehensive strategy of of new accounts (3,689 during the application of our products on sites, cooperation with International further improve existing products. above, will be launched during 2020. the entire branch network in terms second half of ’19), or an increase of + web, and Google. In addition, at our Institutions. It provides coverage One of the main challenges will be During 2020, the Alternative of new sales. This Department 37% compared to ’18. Communication focus is the successful finalization up to 50% for small and medium to set up personalized packages for Businesses Department will make will further strengthen relations channels were comprehensive such of two very interesting projects businesses with a satisfactory certain target groups of individuals or every effort to achieve its objectives with concessionaires by finding as TV channels, radio, newspapers, such as the Smart Branch and the operational business performance, businesses, review costs and increase such as: being granted the license for attractive financing schemes magazines, participation in fairs, Crowdfunding platform, bringing two but which do not meet the products’ profitability with the aim of the securities subscription service; tailored to customer needs. Further agro and student activities, media innovations to the market that will requirements for collateral. This loan growing sales for the most profitable launching the depositary service of and regular improvements will be interviews, billboards, etc. This have a positive impact on the bank’s proved to be quite successful during products as well as to review the collective investment undertakings; made to existing products in terms Department also updated all digital image. the last quarter of 2019, over 20 small, standard conditions of the bank in line being granted the license as an of deadlines and processing time, images of products on posters, medium and Agro businesses were with competitors. Insurance Broker for Life Classes, as well as funding for equipment funded in the amount of over EUR 1 intermediation of a wide range and machineries as per the various PRODUCT AND INSTITUTION Million. of insurance products in addition industries will be further increased. MANAGEMENT DEPARTMENT During June-September 2019, the ALTERNATIVE BUSINESS to Borrower’s Life and collateral Another challenge throughout focus was also on collecting deposits DEPARTMENT insurance; Increasing revenues from 2020 will be maintenance of non- The Product and Institution in ALL. Considering the latter, the commissions and transforming performing loans at acceptable levels. Management Department, the unit bank came up with a preferential Alternative Businesses Department, the bank into a "one stop shop" responsible for managing existing offer, as a result of which, the target one of the newly established units whenever it comes to financial products and services, as well as for for deposits in Lek was exceeded. at Credins Bank, has used the services and products. proposing new products in line with Kaltra Deposit underwent some advantages of non-typical banking the bank's strategic development changes and improvements to products and services markets in objectives and market changes, bring it in line with the regulatory order to serve the customer 24/7 SALES AND SUPPORT LEASING closed another successful year. requirements. Furthermore, the and increase Bank’s profitability DEPARTMENT Throughout 2019, several new benefit package for Mastercard Bank through higher commission products were launched which had Word cardholders was introduced income. During 2019, the Alternative Credins Leasing continues to be the also an impact on the achievement of by applying a cash refund scheme at Businesses Department has managed main choice both for businesses business unit objectives, by meeting the level of 0.4% to 0.6% of the card one of the three business lines that and individuals seeking funding for better and in overall the customer amount used. it will be responsible for starting in machinery, equipment, and vehicles. requirements. Another enthralling product was 2020the intermediation activity in Credins leasing continues to maintain Some of the main achievements of the "Agreement with third parties". insurance. The depositary service for a strong and growing position in the 2018 2019 the products launched are: summer The bank entered into agreements collective investment undertakings market. During 2019, the projected loan launched during the summer with various partners to finance their and investment banking services surplus growth was 12% compared to period when the results of volume customers, under which some of (securities subscription and advisory 2018 and it was realized at the level of and number of disbursed loans (1,989 the financing costs are borne by the services) will be launched during 2020. 97%. 7.9 million Euros were disbursed, disbursed loans in total amount of partner. During 2019, the insurance reaching the targets set by 107%. The 37 % ALL 818,831,250) were positive. This A special focus has also been on intermediation unit has mediated number of disbursements increased I was followed by the festive loan, further strengthening relations with thousands of insurance contracts by 111% compared to a year ago. The launched for the end year holidays. Its state institutions as well as attracting for borrowing clients, generating loan portfolio also maintained a results were also satisfactory despite new institutions into the portfolio. over 14.5 million ALL incomes from good quality with a low level of non- THE PYRAMID

Pyramid construction ended in 1988 serving as museum in heritage until 1991. The name Pyramid was given during the “Students Movement” of December 1990, due to its architectonic shape. The focus of risk management during the year has been in assessing, measuring and diversifying the capital requirement based RISK on specific classes of asset DIVISION and their exposure to risk.

The Risk Management Division is monitoring low-risk investments, automate the process for calculating As of January, 2018, the Bank applied the funds absorption in different responsible for the identification, accompanied with risk protection the indicator according to the the new IFRS9 standard for its currencies and their investment by measurement, monitoring, and measures through derivatives, regulatory requirements. business model, assessment and granting loans in these currencies. prevention and reporting of the an innovation in the domestic classification of risk assets through In the meantime, the bank considers activity related to the management of market and a means of diversifying The focus of risk management during several stages, the calculation mitigation of exposure to the indirect credit risk, market risk, liquidity risk, investments. Attention has also been the year has been in assessing, of credit losses according to the credit risk as a crucial element, as and operational risk. During 2019, all paid to diversify exposures to the measuring and diversifying the duration of classified exposures a result of the exchange rate. Also, Risk structures together with Risk main investment counterparties in capital requirement based on specific for the second stage at risk. The it has been recommended that Committee, Audit Committee, ALCO debt securities, especially according classes of asset and their exposure methodologies and automation clients receive their loans in the and the Board of Directors, have to the countries that make up total to risk. At the same time, the bank of the process for the calculation same currency as their incomes, ensured a prudent management, investment portfolio. This has also has conducted an internal capital of provisions value have been or otherwise convert the existing in accordance with the regulatory been accompanied by diversifying adequacy assessment through a improved and enhanced. The Bank loans denominated in EUR to the framework and the applicable this portfolio for risk indicators as per detailed process, including a number has been focused on improving and local currency. I has been informing legislation and the AML legislation. the financial duration and expected of specific risks not set out in the increasing the investment efficiency and making aware the clients of the The Bank has a risk appetite policy return. regulatory framework for capital in accordance with the objectives potential risks from foreign exchange in place, which is in line with the The Bank has observed all the adequacy ratio, such as credit risk for fund volumes, provisions fluctuations. Credins Bank is not so regulatory needs, as regards the objectives and limits for market risks, concentration, country risk, residual expenses throughout the year much exposed to this kind of risk as assessment and control of several especially as regards the liquidity market risk, owned properties and mid-term budgeting. During compared to the published data for key risks, such as credit risk, credit risk, by timely meeting the bank’s risk, reputation and strategic risk, 2019, the procedure for identifying credits and deposits of the entire concentration, government risk, needs for liquidity in any currency. accompanied with stress-test the operational risk database was local banking system. exchange rate risk, etc. This policy Despite all the developments and scenarios for each of the major risks. improved by coordinating it with all is reviewed on a periodic basis in challenges faced in the interbank and Therefore, this will enable the Bank the units of the bank. accordance with the Bank’s strategy. securities markets throughout the to widely estimate the risk exposure Lending throughout 2019 was based 2018 was a year featured by interest year, the Risk Division, in cooperation not only for available assets, but for on the good acknowledgement rate fluctuations, both for the with the Treasury Department, all its daily activities and operations of clients and on the specifics of domestic currency and foreign has applied a prudent approach to by assessing the additional capital their sectors of operation. It has currencies. Such fluctuations posed a liquidity management, maintaining a requirement. been focused mainly on the large challenge to investment management good performance in a challenging and medium businesses, as well as and mitigation of risk exposures, environment in terms of interest The bank has significantly focused on agro-business since the loans aiming to maintain an adequate level rates, which have been continuously on the good management of disbursed to them were larger both in of investment performance and declining. collateral assessments to cover numbers and volume. In cooperation interest income. the highest possible risk exposures with International Institutions they Credins Bank, as one of the market The Bank, in full compliance with and to include a wider range of were also supported by mitigation developers for the establishment the regulations and international collateral types, such as new financial collateral schemes. and progress of the secondary standards, has adopted Basel 3 most investments and insurance products. market of government securities recent revisions in terms of liquidity In addition to improving the quality Since June 2019, the Bank has by issuing and quoting reference and interest rate risk measurement of collaterals pledged as guarantees been committed in implementing securities prices on a daily basis, and monitoring, particularly by for risky exposures, the Bank is also and ensuring compliance with the has significantly contributed to applying risk assessments on liquidity committed to enhance exposure requirements of the increasing transactions and efficiency coverage ratio and according to coverage ratios through instruments regulation on “On macro prudential of this major project. This Division the regulations of the supervisory for protecting the loans granted. capital buffers”. has been focused on identifying and authority. Actions have been taken to Credins Bank has aimed to balance

14 CREDINS BANK ANNUAL REPORT 2019 CREDINS BANK ANNUAL REPORT 2019 15 NATIONAL HISTORICAL MUSEUM

The National Historical Museum was opened on the 28th of October 1981 and is the largest museum in Albania. It occupies a total area of 27.000 m2 of which 18.000 m2 is used for exhibitions. The National Historical Museum is known for its large mosaic on the facade. It was designed and built by famed Albanian architects to avoid the sense of repetition or monotony. Alongside the exhibit halls, the museum is also home to a large part of the Albanian archives and laboratories The Development Business Divi- sion was supported by IT De- partment of the latest market trends in technology to deliver OPERATIONAL innovative new products. DIVISION

the AIPS and AECH systems and IT DEPARTMENT processes related to transfers, terms Correspondent Banks, a considerable and conditions of the bank, and number of incoming transfers both The strategy of the Bank to be at operational processes regarding in local and foreign currency, with an the forefront of the latest market specific transactions at the bank were increase of 27% compared to 2018, trends in technology, has led the upgraded and further automated by while outgoing transfers increased business units to develop and deliver reducing manual work and enhancing by 22% compared to 2018. Payments process efficiency accompanied by

2019 2019 2019 innovative new products. For this through digital channels such as purpose, during 2019 substantial risk reduction. payment of utilities, taxes, customs changes were made to the existing During 2019, the mobile banking duties, bank transfers within and server infrastructure, which service was launched as an outside the country, increased brought about a better quality of innovation, and banking services significantly. They were increased communication and service to the including those of ATM were more than 200% in number compared bank's branches. provided to all the clients of rural to 2018. IT Department has supported areas, as if it were a real bank development of bank’s projects, the branch, ensuring full functionality of The Bank has continued to offer trade most important of which was further the systems. Another focus of this Finance instruments such as Letters upgrading of Credins Online platform unit was improvement of the help of Credit, cross-border Guarantees to make it easier to access and use by Desk structure (more than 28,000 and Documentary Collections all the clients of the bank. A specific complaints and requests have been (Incasso), as part of payments and unit was established for this purpose, dealt with and addressed). It has bank commitments, through a which was committed to enhance the also supported on a regular basis professional, fair and quality service. functions of this application such as all the branches regarding systems They marked an increase of nearly mobile telephone payments, delivery and their functionalities, including 53 % 27 % 22 % 50% in number compared to 2018. of various notifications to clients for also the branches reallocated. The The use of Documentary Collections offers and services, as well as to make branch staff has been supported (Incasso) and LCs of Export has been it more “user friendly” for our clients. and provided with over 100 various at higher levels compared to the last This process was also continuously trainings. year. supported online through the new The main goal during 2020 will communication channels such as continue to be further upgrading of OPERATIONAL DEPARTMENT cooperation with non-resident Banks, implementing the Universal Credit Payment of utilities, taxes, and email and whastapp for any problems Credins Online platform. The purpose leading to an increasing mutual Confirmation to be applied by the customs duties increased by 53% in encountered by the clients and also is to open current accounts and The Operational Division, as the cooperation with the latter. end of 2020. Through this initiative, number of transactions as compared by providing information tutorial demand deposits online from the central structure supporting the The Department has been very any Bank is obliged to confirm to 2018. Credins Bank is one of the videos. application of existing clients and correct and timely processing of active and productive by providing the transfer credit in favor of the leading banks in the country for In addition, IT Department has this platform is also considered to be all the outgoing bank payments its expertise in various products or beneficiary: credit value, commissions salary and pension processing service worked throughout 2019, to integrated with the Stock Exchange within and outside Albania, services, improving work processes and processing time by enhancing for government companies and regularly enhance relations and Credins Invest. continued to accomplish its role and procedures or entering into third transparency with customers. institutions, with an ever-increasing between the business units and Follow-up of the bank’s projects in with professionalism and efficiency party agreements. The objectives throughout 2020 will trend throughout 2019. Given the bank Management, automating cooperation with the Projects Unit throughout 2019, thus contributing be automation of processes, enabling volumes performed for all payment and simplifying them for an overall and other units involved such as: to the continuous increase of the The incoming transfers processing innovations in payment instruments services, revenues from commissions and real-time use. The contract further improvements in transfer processing quality. Professionalism continued to become more perfect and application of the universal credit have increased compared to 2018. printing and bank advances approval processes, monitoring of the bank’s and accuracy in processing and by improving the processing confirmation. processes were automated at all digital archive project, building a increasing such transactions have velocity. This will help in terms of the bank’s branches by improving SMS communication system for been significant and a main factor in developments that will take place Throughout 2019, Credins Bank therefore the efficiency of the clients in order to carry out certain the sustainability and progress of the in the light of SWIFT initiative for has processed real-time through branch staff. In addition, other transactions in their accounts, The volume of transactions with prepaid cards increased by 50% (Visa & MC) in 2019 compared to 2018.

TREASURY DEPARTMENT throughout our branch network. CARD DEPARTMENT E-Commerce service, through which Significant increase was marked in the clients are enabled to pay online The Treasury Department marked trading volume both for the main and Diversification of card related by card in virtual terminals, has a highly positive performance in secondary currencies, such as British products and services portfolio increased. Credins has been one of 2019, even though financial markets currency GBP (mainly due to BREXIT), remains a top priority in electronic the first banks to offer this service continue to operate with very low AUD, JPY and CAD. Transactions in payments and a permanent challenge and remains one of the main players interest rates. The main objectives GOLD doubled compared to 2018, for the bank. The goal of this in the Albanian banking market that were liquidity management, support and we continue to be the only bank department is that each individual encourage businesses to provide this of bank’s key activities and increasing offering investments in GOLD, which and business is provided with the service. Admission to E –Commerce incomes from the main activities and remains a safe “haven” in periods product that best suits their needs virtual terminals has increased by 55% investments in securities and foreign of high volatility and uncertainties in and requirements. in 2019 compared to 2018. exchange. 2019 was a successful financial markets. year as it marked positive increase in New issuance of bonds in 2019 During 2019, the position of the bank There are several objectives for 2020. 28.000 various indicators. Incomes generated was successful as the demand in the banking market has been This Department aims to further from the activity of Money and exceeded the offer. This product is consolidated for all the quantitative increase the use of cards within Securities Market Sector increased by considered by the clients as a very and qualitative indicators related the country and to grow education 18% compared to 2018. Bank’s deposit good investment alternative. This to cards. Prepaid cards Visa (Lek) of citizens, which will lead also to portfolio increased significantly is the 9th year in a row that Credins and Mastercard (Euro) continue to the reduction of cash payments in maintaining the interest rates at Bank continues to be the leasing be in great demand by customers economy and lower informality. high levels for the domestic market. custodian of bonds issued by joint of all ages. Prepaid cards resulted In addition, our focus will be on BankUp establishment which Foreign exchange incomes increased stock companies, offering both successful when they were launched expanding the portfolio with new precedes psd2, further improvement by 11% compared to 2018. Relations competitive conditions and expertise in 2011 and over the years they have products such as: prepaid Mastercard of reporting systems, intranet set with non-resident banks were further in this area. Credins Bank was licensed exceeded expectations in terms of in USD or acceptance of payments in up, etc. In addition, it shall also be strengthened leading to reducing by the Financial Supervisory Authority satisfaction in use and increasing EURO in physical and virtual Credins focused on the continuous upgrading costs and increasing trading volumes to provide securities brokerage number and volume of transactions. terminals. It is also aimed at finalizing of the infrastructure and technology between the parties. by expanding its entire range of The volume of transactions with the project on improving the in line with the market standards securities operations to the stock technology related to the security of Throughout 2019, the focus of prepaid cards increased by 50% 2019 and further developments, as well Credins Bank as one of the five banks exchange and secondary market. (Visa & MC) in 2019 compared to online purchases, a process that will as improving internal processes and selected as Market Developer for Effective liquidity management, lower 2018. There was also an increase undergo a new authentication stage procedures of the department. reference bonds, was to increase costs, 24-hour trading of currency, in the number of MC World cards and making online transactions even securities trading in the secondary provision of treasury products issued, offered only by Credins Bank, more secure. The project for cards market, by training on a regular basis through Credins online, promotion providing customers with additional personalization with an Albanian the sales staff of the branches. The and increasing transactions in the benefits specific only for this card. company will be completed soon and latter, will therefore, provide clients secondary securities market, are The technology of the entire range of it will reduce the production time and with comprehensive information the main objectives of the Treasury Vida and MC cards’ products issued card delivery to the client. The focus on the functioning and new rules of Department for 2020. The challenge in any currency and for any target of our consistent goals and efforts reference bonds auctions. Any client of the latter remains the follow up group of clients is chip contactless, has been and remains the client, of the bank can find information of financial markets performance making transactions easier and so the loyalty scheme combining online on the bank’s website about by a qualified staff and providing safer. The bank has continued to issuance of cards with additional the quotation of reference bonds by better investment opportunities to support public institutions through benefits will always be a priority for a finding the right moment to invest. customers. One of the objectives Visa and MC business cards designed more loyal and satisfied customer. During 2019, the Bank provided a of this Department is to provide specifically for this category. The wider range of products by offering alternative investment in financial indicators of accepting cards in 100 Albanian EurBond in the secondary markets for Bank customers, Credins terminals have improved 55 % market. As a member of the Albanian especially during this period when marking an increase in volume (41% Securities Exchange, we also provided interests from deposit have remained for Visa cards and 118% for MC cards). our clients with the securities trading at low levels. The number of businesses requiring FORMER FILM STUDIO "NEW ALBANIA"

This neoclassical complex was designed in the years 1950-1952. It was once the building of the Albanian National Film Studios known as “Kinostudio Shqipëria e Re” and the National Film Archives. Nowadays in this building are the Albanian National Cinematography Center, the Marubi Film and Multimedia Academy, the Ministry of Culture, the Institute of Monuments of Culture, etc.The Film Studio "New Albania" has produced and distributed many Albanian films. The most intense period was the 1970s and 1980s when 13-14 movies were produced annuall y. BOARD OF DIRECTORS

SAJMIR SALLAKU JONAS HASSELROT CLIVE MOODY RAIMONDA DUKA MONIKA MILO ELTON TORO MALTIN KORKUTI CHAIRMAN MEMBER DEPUTY CHAIRMAN MEMBER MEMBER MEMBER MEMBER POLYTECHNIC

The building of the University of Tirana was designed by the Italian architect Gherardo Bosio in 1942. Its architecture is characterized by compact parallelepiped united with each other that gives the impression of a Roman fortress and brings in memory the traditional Albanian tower that is performed in terms of modernity. The depositary is another successfully finalized project. Credins Bank was licensed by the Financial Supervisory Authority to perform the PROJECTS depositary activity of pension DEPARTMENT and investment funds.

The European Investment as updated as possible to market Technological modernization has Fund and Credins Bank changes. The license granted for continued to support the strategic these services will further expand objective of generating more signed an agreement in the Credins’ activity in the non-banking business through online channels, amount of 7.5 million euros financial market. accompanied by significant to finance Albanian small investments in systems and and medium enterprises, Another important activity during infrastructure. as part of the program to 2019 was the re-engineering of processes divided into the following Important objectives for 2020 will guarantee Cosme loans During 2019, the Projects Department stability and a good business plan, The depositary is another successfully main categories: processes that take be implementation of CRM system offered by the European finalized successfully some very that do not meet the requirements of finalized project. Credins Bank was place in the branch, Head Office and which aims at a system designed to Union. important projects, which further the bank for collateral, are financed licensed by the Financial Supervisory online banking related processes. organize, automate, and synchronize improved the bank's activity. with loans. This project has been very Authority to perform the depositary The first phase of the project has business processes, sales and successful throughout 2019 and many activity of pension and investment been completed by identifying all marketing activities, customer The new COSME project was business clients have been supported funds. According to the law, any the processes that take place in the service, technical support as well launched in August 2019. The with funding by meeting their voluntary pension fund and the branch and the mapping of almost as the establishment of electronic European Investment Fund and development and growth needs. collective investment undertakings 80% of these processes has been archives. Credins Bank signed an agreement fund should have a cooperation completed. The project will continue in the amount of 7.5 million euros to contract with a bank licensed as a throughout 2020 and will further finance Albanian small and medium depositary which will secure the contribute to the automation of enterprises, as part of the program assets created by such funds. This banking processes, significantly to guarantee Cosme loans offered by new service is in line with Credins increasing efficiency. the European Union. The European Bank's objectives of building a Investment Fund's main mission is to diversified and sustainable business support very small and medium-sized model as well as its efforts to be European businesses. A significant number of businesses with financial THE TANNER'S BRIDGE

The Tanner's Bridge is an 18th century Ottoman period stone footbridge built by the tanner’s craft. The Tanners' Bridge has a height of about 7 meter and a half. The height from the water was 3.5 meters. In the 90s the bridge was restored to its former glory and is now used only by pedestrians. The main objective of Human Resources Department is our employees. During 2019, the focus has been to improve job satisfaction of HUMAN RESOURCES every member of the large Credins family, through their DEPARTMENT continuous evaluation and development, and the use of a fair and competitive system of incentives.

HUMAN RECOURSES STAFF DIVERSITY During 2019, special attention has NEW PROGRAM "#YOUARECREDINS". Interns recruited from this program DEPARTMENT STRATEGY been paid to quality recruitment. During 2019, the recruitment and are trained in theory and practice by In 2019 there were 921 employees or 485 job interviews, 120 preliminary training program of excellence the bank's best experts and external students graduated in economics, trainers in order to develop technical The main objective of Human 5.4 percent more than a year ago. The tests and 299 post tests were computer science or law was skills, especially sales and familiarity Resources Department is our average age of the staff is 35.8 years performed. 132 employees were launched. They were selected with the rules and procedures of the employees. During 2019, the focus old and staff division as per different recruited in total; about 80% were through online testing and group bank. has been to improve job satisfaction generations is: employed in branches. The staff evaluations. 687 candidates applied of every member of the large Credins training has improved both in quality for both programs, 427 of them Key objectives for 2020 will continue family, through their continuous Generation Y, 22-35 years old. and quantity considering also the underwent the written tests and to be ongoing investment in staff evaluation and development, and the 55 percent increase of budgets allocated for the 207 candidates passed in evaluation for professional development and use of a fair and competitive system staff development. A total of 49,426 Generation X, 36-50 years old. groups. better customer service as well as of incentives. We have trusted our training hours were conducted, of 33 percent the continuation of "youarecredins" team and the company built so far, by which: program to recruit new talents to join growing investments for recruitment, Baby Boomers’, over 51 years old Credins family. training and development of the 12 percent 12,696 training hours for the bank’s most important asset, human existing staff; capital. The ratio male/female by the end of 21,280 training hours for new 2019 was 74.7%, 25.3% in favour of employees; female employees. 12,000 training hours for the staff The number of employees at that has been appointed to new managerial level was 277, 81.2% are positions or has been promoted. female executives and only 18.8% are males. 42% of staff or 387 employees 3,450 theoretical training work at the Head Office and 58% or hours during the first program 534 employees belong to the branch #youarecredins. network. The following graph shows an overall presentation of the 81 trainings conducted: 427 6.178 7.3 757 49.426 TESTS

TRAINING AVERAGE DAYS FOR TRAINED TOTAL CANDIDATES DAYS ONE EMPLOYEE EMPLOYEES TRAINING HOURS 687 SELECTED APPLICATIONS T T # () BANK OF ALBANIA

It was designed by the Italian Architect Vittorio Ballio Morpurgo. Its inauguration ceremony was held on October 30th, 1938. The bulding of the Bank of Albania is located at the centre of the capital, in the western part of Scanderbeg’s Square. The architectural style of the Bank belongs to the Rationalism stream style, a stream that was flourishing in the first half of the 20th century in Europe. This style is distinguished for large volumes and strong lines on facades. Throughout 2019, the Bank has supported over 70 online initiatives in line with the UN 17 Objectives of Sustainable SOCIAL Development. RESPONSIBILITY

customers about our services, or have Albania and the region, as well as parks for community children, or to participated in many Agro fairs as a innovative ideas introduced in various plant trees for cleaner air. healthier agriculture means more food competitions contributing to the and less poverty. further development of the economy Credins Bank will continue to make Cooperation with many state health and technology as well as participation more contributions to all the key pillars institutions throughout Albania has in job fairs for better employment of that affect the overall development been at the special focus of the bank, young people. and well-being of the country and which has donated various equipment its citizens. We will be your closest to hospitals, maternity hospitals or Credins Bank is an important player partners since together we can build health centers, providing citizens with in building an active community a better future for ourselves, our better service. and sustainable development cities, children and descendants. investing in cultural and promotional Appreciating education, culture and arts activities across the country. By art as a very valuable contribution financing these initiatives, the bank to the benefit of the community for aims to strengthen and encourage continuous development, as well as efforts to protect and guarantee the employing young people, we have cultural and natural heritage of the supported many artistic local activities. world. It has also supported many We have also contributed by providing sports activities, such as marathons, schools with computer equipment mountaineering, basketball, or other necessary tools and have taekwondo, volleyball, etc.. It has cooperated with many schools and also supported many concerts of the the Education Directories throughout most famous singers of Albanian folk Activities undertaken and supported in line with the UN 17 Objectives have also donated books for better the country. music in all cities of Albania. Recently, by Credins Bank within the scope of of Sustainable Development. We education. We have supported special contribution has been made Social Responsibility in accordance have collaborated with various the elderly with food or other vital It is necessary to point out also the in environment for a healthier climate with the 17 goals of Sustainable organizations and projects that help materials and have contributed to ongoing support that Credins Bank and cleaner environment. We have Development. eliminate poverty for the needy raise awareness for children with has given for start-up businesses in contributed to build green and leisure and children without parental care. autism throughout the society by Social responsibility is at the particular Credins Bank is an institution that supporting their projects financially. focus of Credins Bank, its managers always promotes a good lifestyle and We have supported the development and shareholders, as we strongly has a key role in raising awareness of of agriculture by cooperating with believe that the bank's ongoing the population to a well-being and important institutions such as the growth and development is linked healthy living. We have collaborated European Investment Fund to give to an overall development of the with humanitarian organizations such more access to Agro businesses in the country's economy and well-being of as the Albanian Red Cross or the SOS banking system, providing facilities all citizens. village by donating food, blood, or for financing. We have travelled with Throughout 2019, the Bank has other vital items to the poor, orphans the Mobile Branch in many rural supported over 70 online initiatives or children with thalassemia. We areas informing and educating Agro “MOTHER ALBANIA” MONUMENT

This monument made of concrete and 12 meters high, inaugurated in 1971, represents Albania as a mother guarding over the eternal slumber of those who gave their lives for her. The massive monument holds a wreath of laurels and a star on the right hand. It stands atop a 3 meter pedestal on which the words "Eternal glory to the martyrs of the fatherland” are engraved. CORPORATE GOVERNANCE

INTERNAL MANAGEMENT to protect shareholder rights and GENERAL GOVERNANCE supervises the management. The The members of the Board of re-elected. The Bank is legally ensure the equitable treatment of STRUCTURE Bank’s Board of Directors has Directors exercise their functions represented by the Chief Executive The bank is committed to have a all shareholders, including minority established committees for audit, for a period not longer than four Officer. The Board of Directors good corporate governance by shareholders. The bank has the following governing remuneration and nominations, years. The Board of Directors may authorize two members of and it can also establish other Members may be re-elected the High Management to jointly developing and furthering: Responsibility: Directors shall carry and other bodies: committees deemed important for without limitation. represent the Bank for specific out their duties with honesty, the bank’s business. The Board of matters. probity and integrity. The bank The General Assembly of Meetings of the Board of Directors Responsible, accountable and Directors resolves on matters that recognizes the rights of other Shareholders is the highest of the Bank shall be held at least Audit Committee: The Bank is value-based management; have not been expressly granted stakeholders as established decision-making body of the bank. 4 times per year, and the quorum controlled by the Audit Committee. within the competence of any by laws and regulations, and shall consist of at least 5 members The Audit Committee is composed It is represented and constituted other body in the Bank. encourages co-operation between being present. by three members appointed by Effective oversight and executive by all the voting shareholders the bank and stakeholders in The Board of Directors is the Shareholders' assembly and bodies that act in the best interests of the Bank. The Shareholders' Senior Management organizes creating sustainable and financially composed by 7 (seven) members. has the following duties: of the bank and its shareholders, Assembly decisions that are made and manages on a regular basis sound enterprises. Members of Senior Management including minority shareholders, in compliance with the law are the bank’s business. It defines a) audits and supervises the may be members of the Board and seek to enhance shareholder binding on all the shareholders, and may delegate the duties to implementation of accounting of Directors, provided that value in a sustainable manner; and the Board of Directors, members the personnel, and supervises procedures and internal control of The bank is managed by: their total number does not of Senior Management and execution of the delegated the Bank; including the procedures Appropriate information constitute the majority of the total General Assembly of Shareholders; employees, or representatives of responsibilities, in accordance defined by the Bank of Albania, disclosure and transparency, as number of members of Board the Bank. The General Assembly with the approved policies and and audits the bank accounts and well as an effective system of risk Board of Directors; of Directors. The Shareholders' of Shareholders decides by the procedures. Senior Management respective registrations; management and internal control. Assembly, in accordance with Executive Directors decision or resolution of the simple takes the necessary actions to the provisions of the Articles b) considers internal audit reports or qualified majority about any monitor and manage all risks to Audit Committee of Association, appoints and and monitors the way conclusions issue as defined in the Articles of which the bank is exposed, in The foundation of trust among dismisses the members of the from such reports are dealt with; Association or the law. The General compliance with the approved shareholders, directors and Board of Directors. The Board of Assembly of Shareholders should strategies. c) proposes the authorized managers consists of four corporate be held at least once per year, Directors elects from its members statutory auditor and realizes the governance pillars: Senior Management is composed within six months from the closing one Chairman and one Deputy communication between him and of the Chief Executive Officer and of the financial year in order to Chairman who shall preside over the internal audit of the Bank; discuss, to analyze and to approve and steer the debate during one Deputy Chief Executive Officer. Transparency: The bank shall d) evaluates the financial situation the financial report of the previous the meetings for the Board of The Chief Executive Officer is also ensure that timely and accurate of the Bank based on the report of financial year. Directors. The Chairman and the Chairman of the Shareholders disclosure is made on all material Deputy Chairman of the Board of Assembly. The position of the the authorized statutory auditor; matters regarding the corporation, In case of items in the agenda Directors may not simultaneously Chief Executive Officer shall be e) controls compliance of the including the financial situation, which are to be decided by simple be members of the High governed by individuals who have activity of the Bank with its laws performance, ownership and majority, the General Assembly Management. been initially approved by the Bank and by-laws and notifies the Board governance of the bank, in a of Shareholders can take valid of Albania. Chief Executive Officer The majority of the members of Directors of the Bank about the manner easily accessible to resolutions only if shareholders of the Bank may be appointed of the Board of Directors must conclusions; interested parties owning more than 30% (thirty per only an individual who satisfies the be individuals who, at the cent) of the shares with voting qualifying criteria and does not f) provides an opinion to the Board Accountability: Directors moment they are appointed and right are present or represented in fulfil disqualifying criteria for the of Directors of the bank in relation shall be held accountable for throughout the whole duration of the meeting. administrators foreseen in the Law to issues, for which the latter has their decisions and actions to their mandate, are not related to no. 9662, dated 18.12.2006 “On requested such an opinion; shareholders, and, in certain cases, The Board of Directors is a the bank through private interests, Banks on the Republic of Albania”. key stakeholders, submitting decision-making and supervisory to the shareholders who are g) approves the financial reports themselves to rigorous scrutiny. body. It is responsible for the considered to have control over The Chief Executive Officer is and statements prepared by the strategic management of the Bank and which the bank intends Fairness: The bank obligates itself the bank as per Law, nor to its appointed for a period not longer bank, provides guidelines and executive directors. than 3 (three) years and can be to publish. The Audit Committee holds ordinary and gender. The Board aims that BOARD REMUNERATION AND ASSETS – LIABILITIES COMMITTEE ALCO members not entitled to THE PRODUCTS & SERVICES meetings no less than three times the majority of its members shall NOMINATION COMMITTEE (BRNC) (ALCO) vote: COMMITTEE a year, as well as extraordinary consist of independent non- meetings when called by the Board of executive directors, including The role of the Remuneration Asset/Liability Management The Products & Services Committee Head of the Treasury Department Directors of the bank. The decisions the chairman of the board and Committee is to oversee the Committee (hereinafter ALCO) is (hereinafter PSC) is established with shall be taken by the majority of the heads of the main Board nomination and compensation established with the decision of The secretary of the Committee the Decision of the Board of Directors votes. Abstaining is not allowed. committees, who must have system design and operation, review, the Board of Directors of the Bank. of the Bank. The members and the Members of the Audit Committee experience in the banking and / or The members and the Chairman Chairman of the Committee are assesses and recommend to the The secretary of ALCO Committee may not be employees as members financial sector Board for approval nomination of the Committee are appointed appointed by the Board of Directors is an employee of Credins Bank of the Bank. Members of the Audit and remuneration policies, by the Board of Directors for an for an undefined period. appointed by ALCO Committee Committee may be members of the and practices, as well as Senior undefined period. Only the Board of Chairman. Board of Directors. Administrators are selected based Executive Remuneration, that Directors shall make modifications The main purpose of PSC is to Members of the Audit Committee are on: ensure compensation is appropriate, in the nominated members of the approve products and services which Chief Executive Officer is the the bank’s administrators for whom consistent and aligned with: committee at any time. will generate incomes for the bank, Diversity; Chairman of ALCO Committee. In his prior approval of the Bank of Albania The main purpose of ALCO is to in compliance with the business the strategic objectives of the absence, the Committee is led by the is required. Integrity; protect the capital of the Bank and development strategy and plan Bank, Deputy Chief Executive Officer. Qualifications, competences and its investment, aiming at balancing approved by the Board of Directors Administrators of Credins Bank meritocracy; long term business and risk the assets and the liabilities of the of the Bank, the developments, the sh.a. are selected in compliance strategies, Bank considering the pricing and demands of the market and the with the criteria set out in the Avoiding conflicts of interest. performance and control maturity structure in compliance targeted clients, as well as to modify Policy “Selection, Evaluation and environment, with the respective laws and internal the existing products and services. Remuneration of Credins Bank regulations. ALCO Committee is expectations and requirements of Administrators”. called at least once a month and COMPOSITION AND STRUCTURE LOAN APPROVING COMMITTEES regulators. whenever it is required by the internal It considers also in the name of the regulatory acts. The chairman of the PSC is composed of at least 8 The Bank has set up several levels SELECTION AND NOMINATION CRITERIA Board of Directors, candidates for committee may call extraordinary members entitled to vote and two of committees to review and FOR ADMINISTRATORS Board Members or mmbers of other meetings if deemed necessary. members who shall not have the right approve credit exposures and any Committees, executive directors or to vote. PSC members entitled to lending issues. Regardless of the competencies Senior Managers of the Bank. vote are: of the governing bodies for These committees are ranked The Remuneration and Nomination COMPOSITION AND STRUCTURE appointing Bank Administrators, from the risk department to the Committee (hereinafter referred Chief Executive Officer (Chairman the process of reviewing Board of Directors according to to as BRNC) is established with the ALCO is composed of at least six of Committee), all the candidates for these the amounts and profile of the decision of the Board of Directors members entitled to vote and the positions is carried out by the Deputy CEO, borrower's risk profile. (Board) of the Bank. The members secretary of the committee who shall Board of Directors through the and the Chairman are appointed not have the right to vote. Head of Finance Division; Remuneration and Nomination Each committee is formalized in the internal regulatory acts. by the Board. Only the Board shall Head of Operational Division, Committee. The latter after make modifications in the nominated ALCO members entitled to vote: evaluating and interviewing members at any time. However the Head of Business Development the Candidates, makes its Board should review the composition Division, recommendation to the Board of the committee annually. The The Chief Executive Officer (Head Head of Risk Management Division of Directors. While selecting the Board Remuneration Committee is of Committee), candidate for Administrator, Head of Legal Department, composed of at least three members Deputy Chief Executive Officers, BRNC cooperates with the Human all of whom are Non-executive Resources Department. directors entitled to vote and the Head of Finance Division; PSC members not entitled to vote are: secretary of the committee who Head of Operational Division, shall not have the right to vote. Considering the candidates, the There will always be an odd number Head of Risk Management Division, Head of Marketing Department, Board of Directors should pay of members. The Chairman is an Head of Business Development Secretary of the committee. attention to maintaining general independent Non-executive director. Division balances in terms of competences, The Remuneration Committee will knowledge, experience, diversity meet at least [four] times a year. For the purposes of the proposed product/service, as appropriate, the IT & PROJECT STEERING Head of Risk Management Division POLICIES & PROCEDURES REVIEW by the request of the Chairman of the RISK MANAGEMENT AND INTERNAL following people with no voting COMMITTEE Member COMMITTEE Committee, according to the needs of CONTROL rights may be invited to participate in the Bank and the requirements of the the meeting: The purpose of the IT and Projects Head of Projects Management It is established with the Decision of Board of Directors and the legislators. MAIN PRINCIPLE Steering Committee (ITPSC) is Department the Board of Directors of the Bank. a. Head of Operational Department to manage, review, monitor and Member The members and the Chairman of The Board of Directors is responsible b. Head of Cards Department, etc. prioritize projects as well as IT the Committee are appointed by the for determining the nature and initiatives of Credins Bank from a Head Business Development Division Board of Directors for an undefined extent of the main risks willing to Member The secretary of PSC Committee is an cross-functional perspective. period. take over in order to achieve its employee of the Bank appointed by It ensures and advices the strategic objectives. The Board Head Operational Division the Chairman of the Committee. Management of the Bank on the The main purpose of PPC is to create, of Directors must have effective successful implementation of IT Member approve or amend, in compliance and sound risk management and PSC Committee is called by the projects and strategic initiatives of with the legal framework and the internal control systems in place Head IT Department Chairman of the committee the Bank in line with the approved internal regulatory framework, with adequate competence, status, Member whenever necessary, in compliance Strategy of the Bank. the policies, procedures, independence, resources and access with the strategy of the bank and The role of the IT and Projects regulations, instructions, manuals to the board. Head of Finance Division pursuant to the provisions stipulated Steering Committee is to monitor the and methodologies as well as Member in its internal regulatory acts, and progress of projects, to ensure the other regulatory acts in the Bank, SUPPORTING PRINCIPLE whenever required by the Chairman necessary support and orientation guaranteeing the internal activity Chief of Information Security Sector of the Committee. to achieve their objectives and of the Bank in all aspects and Risk Management: The Bank compliance with the Bank strategy. Member in compliance with the existing pays great importance to risk Another role of this Committee is regulatory framework. management and the Board to monitor the activity of the IT of Directors is responsible for Department. ensuring the use of appropriate risk The ITPSC is established with the COMPOSITION AND STRUCTURE management systems. Inter alia, decision of the Board of Directors of the Board of Directors (i) approves the Bank. The Chairman is appointed PPC is composed of at least five (5) risk management procedures and by the Board of Directors. The members entitled to vote and the ensures compliance thereto; (ii) Deputy Chairman and the members secretary with no voting right. analyzes, evaluates and improves of the committee are appointed PPC members entitled to vote: the effectiveness of internal risk by the Chairman. The Committee is management procedures on a regular composed of 9 members entitled to The CEO who is also Chair of basis; (iii) provides appropriate vote. The ITPSC will meet whenever Committee, incentives for executive bodies, it is necessary and when it is required departments and employees to Deputy CEO, by the chairman and/or members. apply internal control systems; [(iv) Head of Legal Department, establishes a board of directors committee for risk management Head of Compliance and AML Unit The composition of ITPSC is as when necessary; and (v) ensures that follows: the bank complies with the legislation PPC members not entitled to vote: and provisions of the articles of CEO association. Chairman The Secretary of the committee

Deputy CEO The General Manager is the Chairman Deputy Chair of the PPC and has the casting vote in case of equal votes. The PPC is called BRANCH NETWORK

SHKODËR

VAU I DEJES KUKËS

LEZHË PESHKOPI

BURREL FUSHË KRUJË

DURRËS

TIRANË

KAVAJË ELBASAN LUSHNJË BRANCHE POGRADEC

FIER

BERAT KORÇË BALLSH SKRAPAR ATM VLORË

GJIROKASTËR

SARANDË

46 CREDINS BANK ANNUAL REPORT 2019 CREDINS BANK ANNUAL REPORT 2019 47 INDEPENDENT AUDITOR’S REPORT

BANKA CREDINS SHA

Consolidated Financial Statements for the year ended on 31 December 2019 CREDINS BANK ANNUAL REPORT 2019 51 I II III 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41

Credins Bank Sh.A Vaso Pasha Street, No.8, Tirana, Albania Phone:+355 4 5353 000 e-mail: [email protected] www.bankacredins.com

ANNUAL REPORT 2019

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